Mortgage Forecast This Week: Fed Holds Rates Steady Amid Economic Uncertainty

The Federal Reserve held interest rates steady at its monetary policy meeting this week — though sticky inflation, increased unemployment and slowing economic growth could force the central bank to cut rates in late spring or early summer. As recession fears mount and uncertain trade policies pressure financial markets, the key question for investors was how the Trump administration's economic austerity measures and tariffs would influence the Fed's interest rate forecast. "Policy is not on a preset course," Fed chair Jerome Powell said during Wednesday's press conference. "We do not need to be in a hurry to adjust our policy stance, and we are well positioned to wait for greater clarity." The Fed is tasked with maintaining maximum employment and containing inflation. A sluggish economy typically warrants interest rate cuts to stimulate growth, but lowering rates too quickly could fuel price growth when inflation is still above target. Still, the Federal Reserve, which sets a short ... Read full article.